KILLINGLY — The recent sale of a dilapidated Danielson mill included the repayment of more than $75,000 to the town of Killingly for back taxes and other costs, officials said.

On Dec. 19, The Mill at Killingly Apartments paid $245,000 to Trevor Bristow, of the New York-based Lodestone Development Group, for the Powdrell and Alexander Mill at 42 Maple St. That payment included about $76,000 earmarked for Killingly and the Danielson borough.

Approximately, $20,000 was owed for relocation costs the town incurred by moving businesses out of the 145-year-old structure after it was deemed unsafe in 2008.

Another $11,000 will cover the costs of safety measures the town took to secure the 4-acre property. and approximately $45,000 will be applied to satisfy back-tax obligations for the property.

The sale clears the way for Women’s Institute Realty of CT, in partnership with United Services Inc., to begin planning the demolition of much of the looming, red-brick structure that sits near routes 6 and 12. The groups plan to construct a 35,000-square-foot, 32-apartment mixed-use affordable housing complex at the site. Three of the planned units would be rented out at market value, with the remainder set aside as affordable housing.

“I think this plan is likely the best prospect for redevelopment, both for the enhancement of the downtown area and from a historic standpoint,” Town Manager Bruce Benway said. “As it is now, portions of the building have collapsed, the floors can’t carry much weight and we’ve had break-ins.”

The new owners said they plan to keep the mill’s iconic clock tower. Case managers will be at the property to offer health care, job and skill training advice to tenants, officials said.

The mill was sold more three years ago for $350,000 to partners Bristow, Benny Gonzalez and Marta Jablonka, of Queens Village, N.Y. Their plans included constructing 196 units of high-end, open-loft style apartments of 860 square feet each, to be rented for $600 to $900 a month. The $13 million plan also included 24,000 square feet of commercial space.

But after months of no activity at the mill, and limited contact with the developers, the town began exploring other uses for the mill. The state last year pegged cleanup costs at the property at between $585,000 and $990,000.

Diane Manning, president and chief executive officer for United Services, said her group has applied for several competitive state grants, as well as other funding sources, for the project. She said United Services has a waiting list of 80 applicants who seek the type of supportive housing the Danielson site will provide.

“The interagency council which reviews the applications has asked for additional information on the project, which we have provided,” Manning said. “We should hear back from them by the middle of February. If all goes well, we could begin demolition and remediation work in early March.”